Saving is important, and it takes time to make it a positive habit. Therefore, parents need to provide financial education to their children so that a habit of saving can arise from an early age which will be useful for the child to manage their finances later.
There are many ways to teach children to save from an early age, you can follow some of the steps through the points below:
How to teach children to save from an early age
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Give children an understanding of money
The first thing you can do with children is to give them an understanding of money. Give information starting from the type, amount, benefits, and the right use of money slowly until they understand. That way, they will better understand how to use money well.
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Teach children the difference between needs and wants
After giving them an understanding of money, you can help them differentiate between needs and wants. For example, give examples of needs such as clothing, food, shelter, education, and health.
You can also provide examples of what you want, such as the latest cell phone, bicycle, etc. This is useful for helping children determine their priorities in using the money they have.
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Give children an explanation of the purpose and benefits of saving
After providing an understanding of money and the difference between wants and needs, it is hoped that children will be better able to use the money they have well. Next, you can explain the importance of saving and the benefits of saving.
If your child's desire to save has started to emerge, you can help them set goals that can be achieved through saving and managing money. For example, if a child wants to buy the latest toy or gadget, you can help set that as their goal and help determine how much money they should save and the time they need to save for that saving goal.
From these simple things, it is hoped that children can understand the benefits of saving to fulfill their desires. In addition, they can also understand and manage their finances so that later they have even bigger savings goals for their future.
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Provide a place to save
When children have started to have a goal of saving, then they need a place to save their money. You can start opening your own savings account or provide a piggy bank for them to save.
Currently, many banks accept opening savings accounts for children. MAS Saving from Bank MAS can also be an option for saving children with various benefits. You can open a QQ account at Bank MAS for your child.
A QQ account is a joint account that is created if one of the account owners is underage, so they don't have an ID card.
This account is usually made by parents with their children who are still small or still teenagers. The joint savings account is in the child's name but added with the QQ code and the name of the responsible parent.
You can open a QQ account at Bank MAS by following the steps in the picture below.
By providing an account for their children or a place to save, they can immediately set aside the pocket money they earn for safekeeping.
Those are some points you can apply to teach children to save from an early age so they can have the habit of saving when they grow up.
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